Flour price reduction

As this developed, a flour company was reported to have reduced prices by per bag and may reduce further to Dimagiba, however, said the

is way too small. The DTI also awaits formal notice by flour millers if they really are implementing price reduction.

As a rule of thumb, every reduction per bag of flour should translate to 25 centavo reduction in prices of commercial or branded loaf bread. So a reduction would mean reduction per loaf. Dimagiba said that prices of flour should go down to go down to to

per bag from the prevailing average price of per bag..

On Friday, bakers announced a 50 centavo price reduction in prices of Pinoy Tasty and 25 centavos per pack of ten for Pinoy Pandesal effective July 14 following a successful experimentation on the use of blended Turkish flour and Harinang Pinoy, both low cost flour.

But bakers said that given the lower prices of wheat in the international maker, millers should be able to reduce prices by as much as per bag so they can also pass on the savings to consumers through a to per loaf price reduction.

Both millers and bakers are facing investigation before the National Bureau of Investigation for possible profiteering and collusion as prices of flour and bread remain high despite slumping prices of wheat, raw material of flour, in the international market. Flour accounts for 75 percent of total cost in bread production.